We can all acknowledge the increase in popularity and uptake of ride-sharing services. Uber and Lyft dominate the ride-sharing industry. Thanks to their professionalism, clean cars, and tech-based systems that have slowed waiting time, increased convenience, and improved payment efficiency, ride-sharing services have beaten traditional taxis to become the most preferred transport option. The industry's operations needed regulations to safeguard rideshare users, and after the enactment of the laws, Uber and Lyft officially began operations in 2015.
Nevada has several personal injury laws protecting ride-share customers in the event of an accident. The regulations set forth liability insurance policies in the interests of the ride-share customers. This article details how the law applies to ride-sharing accidents, the damages you can recover in the event of an accident, and how, as a plaintiff, you can recover damages.
Nevada Laws Applicable in Ride-sharing Crashes
Nevada personal injury law, Chapter 706A, protects individuals riding as Uber or Lyft passengers or drivers involved in a crash with an Uber or Lyft driver.
In the unfortunate event you are involved in an accident while riding as a Lyft or Uber passenger in Nevada, the company’s commercial liability personal insurance policy covers you for up to $1,000,000.
As for drivers hit by Uber or Lyft drivers, compensation will be based on:
- The party at fault and the share of blame assigned by the jury
- Whether the ride-share driver was searching for or was carrying passengers at the time of the crash
Chapter 706A of the NRS (Nevada Revised Statutes) regulates ride-sharing companies. The law is specific to transportation network companies. Its definition of a transportation network company is any business that relies on a software application service or a digital network to transport a passenger from one location to another.
Uber and Lyft are the dominant players in the industry. Their business model fits Chapter 706A’s definition of a transportation service network company since their clients secure the transport services through applications accessible on Android, iPhone, and other smartphones.
Requirements Chapter 706A Sets for Transport Network Companies
Chapter 706A provisions seek to protect individuals who use ride-share services. In this light, this statute sets forth the following conditions for drivers and the obligations transport network firms must meet to be legally compliant.
- The companies should conduct background checks of the drivers before onboarding them onto the platform. The checks seek to establish if an applicant, the driver, has a criminal history.
- Proof of a liability insurance policy. Furthermore, the policy should have the minimum legal limits, namely:
- $25,000 per individual for injury or death
- $50,000 per accident catering for bodily harm or death — This liability coverage caters to crashes where more than one victim is injured
- $20,000 per crash to compensate for property damage
The above limits were made in 2018 as the 25/50/20 automobile insurance changes to compensate victims of vehicle collisions who sustain injuries, suffer fatalities, or suffer property damage.
Periods of Coverage for Ride-Share Company Drivers
Compensation requires you to establish whether the ride-share driver was looking for passengers or was ferrying passengers at the time of the crash. There are three periods for which you can seek compensation.
- First period — When the driver was not engaged in a ride-sharing activity
- Second period — The driver was active but was waiting for a request
- Third period — The driver had accepted a trip request and fulfilled the request to the end of the ride
It is crucial to determine which period the driver was in. This will inform your strategy when filling out a lawsuit under Chapter 706A.
Note: Ride-share drivers are independent contractors of the transport network company, not employees.
Let us examine each period closely.
a) When the Driver is Not Engaged in a Ride-Hailing Activity
The first period focuses on whether the driver uses the vehicle for private use and is not ferrying passengers or actively seeking them. In this period, a driver’s personal insurance coverage kicks in and is the only policy that applies in case of an accident. The policy compensates the accident victims for as little as $25,000 per individual for any injuries or fatalities suffered in the crash and $20,000 for property damage.
Ride-share drivers also have access to gap insurance, also known as ride-share insurance. Gap insurance coverage extends coverage for ride-share drivers in case they are involved in accidents when they are off-duty. This policy is tailored to provide protection when Uber or Lyft drivers use their vehicles to fulfill trips.
Note: Gap insurance coverage is optional and not mandated by Nevada personal injury laws. So you could be involved in a crash with a ride-share driver without gap insurance coverage.
b) Driver Was Online But Was Waiting for a Ride Request
Transport network companies refer to the transition period after a driver fulfills a prior trip and as he/she awaits a new trip request as the driver mode. The driver is online or active but has not accepted a trip request.
Both Lyft and Uber offer contingent liability insurance during this period. A driver’s car insurance is the primary coverage. The transport network company’s insurer covers the excess damage in the crash. Contingent liability insurance provides:
- A maximum of $50,000 for injury or death, and
- A maximum of $25,000 for property damage
The above limits are far less than the 250/500/50 limits set for taxicabs. Nevada law, NRS 706.305, requires operators of cabs to take out liability insurance coverage. Legally, the limits set for this policy are:
- Up to $250,000 for physical injury or death per person in a crash
- Up to $500,000 for the bodily injury or death of two or more individuals in a single crash
- Up to $50,000 for the destruction of property in a single crash
- Up to $500,000 for a combined single-limit physical harm to one or more persons and for the destruction of property in a single crash.
On the other hand, taxi cabs are not mandated to maintain underinsured or uninsured motorist coverage. This means the taxi company will not cover your injuries if you are involved in a crash while riding a cab whose driver is uninsured or underinsured.
Therefore, the lack of underinsured or uninsured coverage makes Uber and Lyft preferable choices for using a taxi cab.
Note: The contingent liability coverage covers you only if the ride-share driver was at fault while actively looking for ride requests using the transport network company’s app. It does not cover you if you were responsible for the crash.
c) Trip Requests Accepted and Fulfilled
The third period commences when a ride-share driver accepts a trip request and ends when all passengers arrive at their destinations, and the trip end is also reflected on the app. It is important to note that a driver’s acceptance of the trip request precedes a pickup.
During this period, the ride-sharing company’s commercial liability policy is the primary coverage. Uber and Lyft have commercial liability policies with the following limits.
- Up to $1,000,000 per person in a single accident
- Up to $2,000,000 for all passengers in a single crash
Potential Defendants in an Accident Involving a Ride-share Vehicle
You should consult a personal injury attorney when seeking compensation following an accident involving a ride-share vehicle or as a ride-share passenger. Your attorney will help you identify the parties you could sue to seek compensation for your injuries or losses.
The potential defendants must bear responsibility for the accident. Once the jury establishes fault, you will receive compensation equal to the assigned fault of the defendants.
The following are the potential defendants in a ride-sharing accident.
- Ride-share vehicle’s driver — Whereas the driver could bear the more significant share of the fault, most drivers have insufficient funds to pay the sum awarded in damages.
- Transport network companies like Uber and Lyft — You maximize your compensation when the company is found to be at fault.
- Another motorist involved in the crash — This motorist should have contributed to or caused the crash. You could include the driver's employer if the driver was operating a company car. However, you can only include the employer if the driver was on duty at the time of the crash.
- Vehicle’s manufacturer — You will need to prove the car was defective and was the likely cause of the crash
- Mechanics
Note: A personal injury lawsuit could have several liable parties. Further, the jury can assign each party a share of the fault for the crash. Their determination is pegged on the evidence you present to support your claim. You bear the burden of proving your case.
Damages You Can Recover from a Lawsuit Against Ride-Share Entities
Car accidents are consequential, and those involving ride-share vehicles are no different. Nevada law allows you to recover compensation for:
- Injuries, minor or significant, sustained in the crash. The degree of severity of the harm varies depending on the gravity of the crash
- Property damage resulting from the accident
- Additional losses you incurred or are likely to incur as a result of the accident
- Loss of a loved one in the crash
Juries award compensatory damages and punitive damages.
a) Compensatory Damages
Compensatory damages address the injuries and losses incurred or that a plaintiff is likely to incur in the future. The award offers compensation for economic and non-economic damages.
Economic damages address monetary expenses and losses whose dollar value is immediately ascertainable. These include:
- Medical bills — You cannot shelve seeking medical attention for your injuries on account of waiting for compensation from Uber or Lyft. You will seek medical treatment and keep your bills for the lawsuit. These expenses are part of your compensation-ask in the suit. Additionally, you could require therapy in the future. With the help of your attorney, you will determine an accurate estimation of the likely costs.
- Car repair bills — Under car repair bills, plaintiffs seek to recoup costs incurred in repairing or replacing the vehicle and all expenses incurred while renting a similar car before the repair is complete or before replacing the damaged vehicle.
- Lost wages — Refers to income lost while you were recovering. The courts will require documentation to prove your claim of lost income. Lost wages include regular pay, bonuses, overtime, commissions, self-employment, and other employment benefits.
- Lost earning capacity — There is a distinction between lost earnings or wages and lost earning capacity. Juries award compensation for lost earning capacity to individuals unable to resume work for a sustained period because of their injuries. Therefore, lost earning capacity caters to the loss of future income after the lawsuit, while lost wages caters to past income loss before the suit.
Experts consider several issues, like how long the injuries are likely to last, your age and life expectancy, opportunities for promotions, long-term employment goals, and the number of productive years before retirement. All these considerations inform the final figure you will detail in your lawsuit.
- Short and long-term care expenses
- Cost of physical and occupational therapy
Non-economic damages incorporate losses whose immediate dollar value is not immediately ascertainable. These losses include:
- Pain and suffering — It is difficult to put a monetary value on the pain and suffering an accident causes. You do not also need to have sustained an injury for you to be compensated for your pain and suffering.
- Loss of consortium — Refers to the loss of the benefits you enjoy with your spouse, children, and family occasioned by the accident. For example, you can list the loss of your ability to provide your spouse with sexual privileges under this section. Moreover, you can detail the loss of the ability to care for your children with the same affection and attention you did before the crash as a loss of consortium claim.
- Disfigurement
Note: The non-economic damage awards are subjective since the dollar value is not immediately known.
b) Punitive Damages
Juries award punitive damages to punish a defendant and deter other members of society from engaging in a behavior similar to that of the defendant.
If your loved one was killed in a crash in which an Uber or Lyft driver was at fault, you could file a wrongful death lawsuit to recover damages.
What If You Are Partially at Fault for a Car Accident Involving a Lyft or Uber Vehicle?
The commercial liability personal insurance policy does not cover at-fault drivers who cause collisions involving transport network company vehicles.
Juries rely on Nevada comparative negligence laws to apportion blame for collisions. Nevada is a modified comparative negligence state. It means a plaintiff can only receive damages if he/she is no more than 50% at fault for the crash. Should you be found to be 50% at-fault, you will not recover damages.
Ride-share personal injury lawsuits award significantly higher compensation than other personal injury lawsuits involving vehicles.
It is also important to note that a plaintiff does not receive the entire sum of an award. You are only entitled to the defendant’s share of the blame. The value of the compensatory damages you receive will be a portion of the total sum awarded in the lawsuit.
How a Personal Injury Attorney Can Help You In a Personal Injury Lawsuit Following an Accident With a Ride-Share Car
Uber and Lyft, the dominant transport network companies, thrive on good publicity. They thus opt for out-of-court settlements as opposed to trials. Since the settlements are confidential, you will find it hard to ascertain a precedent to use to determine the potential defendants in your case and how much in damages you should seek. Additionally, these companies use the lack of information on previous lawsuits to force individuals into settlements that are a fraction of the reasonable sum. Hiring an attorney helps you work around these challenges.
How can a personal injury attorney help?
Experienced personal injury attorneys fight to secure a plaintiff’s best interests in a personal injury case against ride-share companies. In this pursuit, attorneys:
- Assess cases and evaluate their potential to secure compensation
- Determine the likely defendants in the suit - primarily companies, since they can pay compensation in full.
- File a lawsuit as required by law, particularly filling the suit within two years from the date of the injury, which is the time provided in Nevada’s Statute of Limitations.
- Negotiate an out-of-court settlement in favor of the plaintiff should the ride-share company elect to settle the matter out of court — Out-of-court settlements offer a fast way to resolve the case without a protracted legal battle in court. Settlements where personal injury attorneys are involved result in higher payouts than negotiations they are not part of.
- Represent you in court if there is no consensus at the out-of-court negotiations, both in a personal injury and wrongful death lawsuit.
Find a Las Vegas Personal Injury Attorney Near Me
Chapter 706A offers the opportunity to recover damages from the catastrophes following a collision with an Uber or Lyft vehicle. With a personal injury attorney, you maximize your chances of securing a just sum. An attorney will help you deal with the legal aspects of the suit and the negotiations that follow as you take time to recover.
The Las Vegas Personal Injury Attorney Law Firm has vast experience handling personal injury claims and is particularly familiar with actions against ride-sharing companies. We invite you to utilize this experience by calling our team today at 702-996-1224 for a free and confidential case evaluation.
